The Investigating of the Dynamic Relationship between Financial Cycles with Business Cycles and the Inflation Gap in Iran: An Application of Wavelet Transform

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

Taheri Bazkhaneh Saleh; EHSANI MOHAMMAD ALI; GILAK HAKIMABADI MOHAMMAD TAGHI

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH Year:2019 | Volume:9 | Issue:33 Page(s): 121-140

Download Full-Text

Persian Verion

View:

380

Download:

Cites:

Information Journal Paper

Title

The Investigating of the Dynamic Relationship between Financial Cycles with Business Cycles and the Inflation Gap in Iran: An Application of Wavelet Transform

Author(s)

Taheri Bazkhaneh Saleh | EHSANI MOHAMMAD ALI | GILAK HAKIMABADI MOHAMMAD TAGHI | Issue Writer Certificate

Keywords

Financial CyclesQ1

Business CyclesQ2

Inflation GapQ1

Maximal Overlap Discrete Wavelet TransformQ1

Continuous WaveletQ1

Abstract

The 2007 global financial crisis showed that Financial Cycles is one of the reasons for the fluctuations of macroeconomics and could create Business Cycles. If there is such a relationship, adopting an active policy response to smooth Financial Cycles seems necessary. The present study investigates the dynamics of the relationship between Financial Cycles with Business Cycles and the Inflation Gap in Iran's economy during 1990: 1 – 2016: 4. To accomplish this, first, a financial condition index for Iran's economy has been created. In addition, the causality test has been conducted in the frequency domain and available frequencies have been determined to predict economic growth whit the index. Then, in order to investigate the purpose of the research and analysis in the frequency domain and time-frequency domain, the new Maximal Overlap Discrete Wavelet Transform and Continuous Wavelet Transform tools are used. The results show the relationship between financial cycle and the business cycle in the short run and long run is bilateral and extremely unstable. In the medium run, the business cycle is a leading variable, but the phase difference between the two variables in the 1990s is different from those of the 2000s. In the medium run, the Financial Cycles have kept inflation away from its long run trend. But in the long run and after 2007, this relationship has been reversed. According to the results of the research, it is recommended that monetary policy makers, in addition to smoothing output and inflation around their long run trends, should also consider this for the financial sector so that the two objectives above can be achieved with lower error in different frequencies.

Cites

No record.

References

No record.

Cite

APA: Copy

Taheri Bazkhaneh, Saleh, EHSANI, MOHAMMAD ALI, & GILAK HAKIMABADI, MOHAMMAD TAGHI. (2019). The Investigating of the Dynamic Relationship between Financial Cycles with Business Cycles and the Inflation Gap in Iran: An Application of Wavelet Transform. JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH, 9(33 ), 121-140. SID. https://sid.ir/paper/192134/en

Vancouver: Copy

Taheri Bazkhaneh Saleh, EHSANI MOHAMMAD ALI, GILAK HAKIMABADI MOHAMMAD TAGHI. The Investigating of the Dynamic Relationship between Financial Cycles with Business Cycles and the Inflation Gap in Iran: An Application of Wavelet Transform. JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH[Internet]. 2019;9(33 ):121-140. Available from: https://sid.ir/paper/192134/en

IEEE: Copy

Saleh Taheri Bazkhaneh, MOHAMMAD ALI EHSANI, and MOHAMMAD TAGHI GILAK HAKIMABADI, “The Investigating of the Dynamic Relationship between Financial Cycles with Business Cycles and the Inflation Gap in Iran: An Application of Wavelet Transform,” JOURNAL OF ECONOMIC GROWTH AND DEVELOPMENT RESEARCH, vol. 9, no. 33 , pp. 121–140, 2019, [Online]. Available: https://sid.ir/paper/192134/en

Related Journal Papers